Topic: Growth Stocks

Wall Street Stock Forecaster Hotline – Friday, October 5, 2012

Article Excerpt

HEWLETT-PACKARD CO., $14.73, New York symbol HPQ, fell 14% this week after the company cut its earnings forecast for its 2013 fiscal year, which ends October 31, 2013. Hewlett now expects to earn between $3.40 and $3.60 a share during the year. These figures exclude costs related to the company’s recent restructuring plan, which includes merging its personal computer and printer divisions, simplifying its product lines and cutting 8% of its workforce. The new forecast is well below the consensus estimate of $4.18 a share. The company’s enterprise services division, which sells server computers and services to businesses, recently lost four major customers; this is the main reason for the lower earnings forecast. Consumers are also holding off on computer and printer purchases due to the slow global economy. Even with these setbacks, Hewlett remains a leader in most of its markets. As well, its restructuring will free up more cash to increase its research spending, which is currently a low 3% of…